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TA: Ethereum Dips From $2K, Why 100 SMA Might Spark Fresh Increase

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Ethereum struggled to gain pace above the $2,000 resistance against the US Dollar. ETH is correcting lower, but dips might be limited below the $1,900 zone.

  • Ethereum started a downside correction from the $2,000 resistance zone.
  • The price is still trading above $1,900 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $1,905 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it stays above $1,900 and the 100 hourly SMA.

Ethereum Price Reaches Key Support

Ethereum attempted an upside break above the $2,000 resistance zone. However, the bulls struggled above the $2,000 level. A high was formed near $2,015 and the price started a downside correction.

There was a move below the $1,950 and $1,940 levels. Ether price dipped below the 23.6% Fib retracement level of the upward move from the $1,704 swing low to $2,015 high. However, it is still trading above $1,900 and the 100 hourly simple moving average.

There is also a key bullish trend line forming with support near $1,905 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $1,960 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,980 level and a connecting bearish trend line on the same chart. The main resistance is still near the $2,000 zone. A proper upside break above the $2,000 resistance might stage a fresh increase. In the stated case, ether price could rise towards the $2,100 level. Any more gains may perhaps send it towards the $2,150 resistance zone.

Downside Break in ETH?

If ethereum fails to continue higher above the $1,980 resistance, it could extend its downside correction. An initial support on the downside is near the $1,920 zone.

The next major support is near the $1,900 level and the 100 hourly simple moving average. Any more losses might call for a test of the 50% Fib retracement level of the upward move from the $1,704 swing low to $2,015 high. A downside break below the $1,850 level might send the price towards $1,800.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now just below the 50 level.

Major Support Level – $1,900

Major Resistance Level – $2,000

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